Does Avi-Tech Electronics Limited's (SGX:BKY) Recent Track Record Look Strong?
For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at Avi-Tech Electronics Limited's (SGX:BKY) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
See our latest analysis for Avi-Tech Electronics
How Did BKY's Recent Performance Stack Up Against Its Past?
BKY's trailing twelve-month earnings (from 30 September 2019) of S$5.5m has jumped 37% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 9.0%, indicating the rate at which BKY is growing has accelerated. What's enabled this growth? Let's see if it is merely attributable to an industry uplift, or if Avi-Tech Electronics has experienced some company-specific growth.
In terms of returns from investment, Avi-Tech Electronics has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. Furthermore, its return on assets (ROA) of 8.4% is below the SG Semiconductor industry of 14%, indicating Avi-Tech Electronics's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Avi-Tech Electronics’s debt level, has declined over the past 3 years from 16% to 12%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Avi-Tech Electronics has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. You should continue to research Avi-Tech Electronics to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BKY’s future growth? Take a look at our free research report of analyst consensus for BKY’s outlook.
Financial Health: Are BKY’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 September 2019. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
